In this low interest rate environment, some shipping stocks are generating income for investors.
Take Teekay Corp., which transports approximately 10 percent of the world’s seaborne oil. The company has built a significant presence through three publicly traded subsidies (known as daughter companies) that offer some serious yield for investors:
- Teekay LNG Partners L.P.
- Teekay Offshore Partners L.P.
- Teekay Tankers Ltd.
"We have a lot of assets sitting up at the parent. In addition we own shares in the daughter companies. That value is about $48 bucks a share and we are trading at $28, $29. That’s why we announced a stock buy-back program—recommencing up to $200 million dollars," Bjorn Moller, president and CEO of Teekay Corp., told CNBC's "The Strategy Session on Tuesday.
Peter Evensen, CEO-elect of Teekay, who appeared with Moller on CNBC, also talked about how important buy-backs have been to the company.